US business to run ads against Russian sanctions

President and CEO of the United States Chamber of Commerce Thomas J. Donohue (AFP Photo / Eric Piermont) / AFP

Two top US business lobbies plan to run newspaper adverts warning that more Russian sanctions risk harming US workers and businesses. The trade associations warn that economic sanctions will translate into huge damages from lost trade with Russia.

The adverts will be published in the New York Times, Wall Street
Journal and Washington Post by the US Chamber of Commerce and
National Association of Manufacturers on June 26, Bloomberg cites a person familiar with the
plans, who asked not to be identified.

US trade associations fear even temporary sanctions would inflict
long-lasting damage on exports to Russia. Besides spoiling
relations with Russia sanctions will force a reassessment of the
political risk associated with exports and raise the cost of
future financing.

Even a limited group of large Russian banks impacted by the
sanctions would slow the national economy and make US imports
more expensive as the ruble declines.

According to industry executives US energy companies would be
required to apply for licenses for exporting technology to Russia
if sanctions were agreed. Moreover, those companies exporting
products with more than 10 percent of US technology content won’t
be granted licenses at all.

If restrictions on technology transfer applied, exports to Russia
will become more complicated. That will lead to additional
expenses for US companies, especially in the energy sector which
is full of high technology.

The only effect of imposing additional sanctions will be “to bar
US companies from foreign markets and cede business opportunities
to firms from other countries,” Bloomberg cites a copy provided
by the person familiar with the plans.

The White House’s intentions face opposition from both US
business and European countries who say that Washington’s
unilateral action will deal nothing than a competitive
disadvantage to the national economy.

The Yamal LNG gas project between France's Total and Russia's
Novatek is highly dependent on US technology and will experience
serious difficulties if sanctions are imposed, says Yves-Louis
Darricarrère the President of the Exploration & Production
Division at Total.

“Yes, we need US technologies. Oil industry involves the use
of the technologies of different countries around the globe.
That’s why we need cooperation instead of a conflict,”
Vedomosti quotes Darricarrère as saying.

German Chancellor Angela Merkel told members of her party on
Tuesday that further sanctions against Russia could be back on
the agenda at the Brussels summit on Friday, if Russia doesn’t
take measures to de-escalate crisis in Ukraine.

Merkel praised Russian President Vladimir Putin for asking the
Russian upper house of parliament to cancel his right to deploy
troops abroad, describing it as a “a first step” in
de-escalating the crisis.

However the Chancellor stressed that “substantial progress” with
which they can go into sustained negotiations is needed.

“We help, wherever we can. But when nothing helps, then
sanctions can come back on to the agenda,” she added.